News Global Market Spain 18 May 2023
Due to rising energy costs, steel shipments from Spain fell to the level of pandemic 2020
In 2022, steel companies in Spain reduced steel exports by 14% or by 1.4 million tons compared to 2021 – to 8.1 million tons, according to the Spanish Association of Steel Producers UNESID.
“After a significant recovery in exports in 2021, last year the indicator returned to the starting point of the pandemic 2020 due to a sharp increase in energy prices. The indicator is one of the lowest in the last decade,” the report says.
Steel shipments to third countries fell by 24% compared to 2021 – to 2.2 million tons (27% of total exports). The share of exports to third countries has been gradually decreasing since reaching a maximum of 55% in 2014.
Despite a significant drop in export volumes, the share of EU countries reached a maximum over the past 12 years – 73%. Shipments of Spanish steel within the EU fell by 10.1% y/y – to 6 million tons.
During the year, Spanish steelmakers exported 6 million tons of profiles (-11% y/y). Shipments of wire rod and stainless hot-rolled coils fell 33% y/y. In general, exports for all types of products fell below the levels of 2020, with the exception of stainless hot-rolled coils and profiles.
Despite the fall in exports in 2022, the revenue of steelmakers from deliveries almost doubled to a record 12.25 billion euros.
“However, export competitiveness will be threatened if the cost of electricity in Spain remains prohibitive. Recent events give us a break, but still in April 2023 the price of electricity is 40% higher than in 2019, gas is almost three times more expensive,” the association notes.
As GMK Center reported earlier, in 2022 Spain cut steel production by 19.2% compared to 2021 – to 11.46 million tons. In December, the country’s steelmakers produced 686 thousand tons of steel, which is 19.8% less than the previous month.
In general, steel production in the EU countries in February 2023 fell by 12.6% compared to February last year – to 10.5 million tons. In January-February 2023, 20.7 million tons of steel were produced in the EU, which is 14.3% less y/y.